Market Update 3rd February 2025

Coconut Oil Market Remains Steady Amid Global Price Fluctuations

The international coconut oil market demonstrated resilience despite recent fluctuations in global vegetable oil prices. Rotterdam CIF prices for coconut oil ranged from $1,945 to $2,000 per MT, showing slight gains from the previous month. With Desiccated Coconut (¢/lb FOB): USA: 80.00 – 150.00 | Europe: 80.00 – 150.00

Philippine Coconut Exports Show Positive Growth in January

According to the latest estimates from UCAP, the Philippines exported 198,765 metric tons (MT) of coconut products in January, a 5.3% increase over the previous year. This growth was primarily driven by coconut oil exports, which reached 110,234 MT, an 8.2% rise over January 2024.

Shipping Costs

According to the Drewry World Container Index, freight rates from Shanghai to Rotterdam dropped 5% to $3,274, and rates from Shanghai to Genoa fell 4% to $4,400.

Port Congestion in Manila

The Port of Manila is currently facing significant congestion. As of early 2025, the average wait time for cargo handling at the port has increased to approximately 2.0 days.

This congestion is due to limited infrastructure and operational inefficiencies, which have resulted in delays in cargo processing and increased costs for rerouting shipments to other ports.

Also, there is a persistent global shortage of shipping containers, with shortages in areas like the Philippines, where demand is high. This scarcity has led to increased localised freight rates and extended shipment lead times.

US Tariffs

The recent tariffs the United States imposed on Canada, Mexico, and China have not directly affected the Philippines. In fact, the Philippines is in a relatively strong position regarding its trade relations with the United States.

The Philippines maintains a balanced trade relationship with the United States, with a trade deficit of only $4 billion last year. This deficit is significantly smaller compared to those the U.S. faces with other Asian countries,

Additionally, the Philippines benefits from the 1989 Philippine-U.S. Trade and Investment Framework Agreement (TIFA), which addresses various trade-related issues.